Examine the stock returns for both Pfizer and AstraZeneca during the Essay - 1

Examine the stock returns for both Pfizer and AstraZeneca during the bid process and provide possible reasons for changes in price on key dates - Essay Example t a company then price of the company’s stock is likely to rise while price is likely to fall is an expected acquisition is likely to be detrimental. Factors such as â€Å"investment strategies,† â€Å"ownership forms,† â€Å"capital structures,† and â€Å"dividend policies† that are likely to change with an acquisition are also likely to influence stock prices (Moyer, McGuigan, & Kretlow 2008, p. 12). In addition, expressed opinions by investors can either improve or reduce share price at a time (Khan & Zuberi 1999, p. 45) and all these could have influenced prices and return of the two companies’ stock. One of the key dates in the takeover period is November 25, 2013 when Pfizer informed AstraZeneca of intended takeover. Even though it was a private correspondence, it could have spread to stakeholders and a perceived lost value among Pfizer’s stakeholders could have triggered the observed negative change in stock price. Price for AstraZeneca however increased afterwards to indicate perceived benefits by the company’s stockholders. These suggest that Pfizer offered better economic prospects than AstraZeneca did at the time, and its internal environment could be more promising than that of AstraZeneca. On May 1, 2014, Pfizer made public its takeover interest and suffered a subsequent decline in price, which begun two days earlier, and perceived loss of advantage by existing stockholders as well as possible negative investor opinions could have caused the decline. At the same time, stock price for AstraZeneca declines and this could be a response to Pfizer’s price trends that made it less attractive. The fall in stock price for Pfizer continued until 7 May, a time at which the British Prime Minister expressed concerns over the takeover, and then stabilized until mid May. Price for AstraZeneca stock however remained constant over this period. Pfizer’s persistence on the takeover, against its shareholder’s confidence could explain the fall and the

Analysis on a Marketing News Story which was published in 2013 Essay

Analysis on a Marketing News Story which was published in 2013 - Essay Example This means that in 2014, organizations that do not employ effective marketing techniques may fail to sell their goods because of inefficient communication. According to Demers (2013), social media and mobile usage has increased in the society, signalling that customers are developing preferences for goods that are advertised on these devices. Kurtz (2013) also argues that the high usage of social media is influencing purchase patterns meaning that the assumption may be applicable; although there is need for further research to test whether this tenet is applicable in real life. Consumer behaviour is also monitored through online techniques such as advertisement tracking, which traces sites that are preferred by numerous internet users. The author has analyzed each online marketing technique while stating how it is perceived and preferred, and the value it creates to consumers and marketers. Consumer Behavior and Corporate Communication Demers (2013) analysed the increase in the usage of the World Wide Web and found out that it may guarantee large market shares for products that are advertised through the internet. ... Images are used widely on the Internet because they are attractive and catch the attention of both current and prospective product users; scientists have proven this assumption, meaning that it is applicable to more than fifty percent of the members of the society (Doster, 2013). The author also argues that users prefer simple images with short descriptions. Table 1: showing the trends in the usage of the internet from 2008 to 2012 (http://www.kpcb.com/insights/2013-internet-trends) The trend in the table indicates that consumers in the United States are the most frequent users of the Internet while India has the least number of internet users compared to other countries. This means that organisations should shift their marketing techniques from outbound to online as indicated in Appendix 2. The author advises organisations to penetrate more than one social media platform meaning, advertising goods on these platforms appeals to consumers and captures large markets for different firms (Heaton, 2012). Essentially, marketers should adopt the integrated communication methods in order to achieve and maintain a competitive advantage. Demer (2013) also argues that consumers are shifting their preference to goods that are advertised by the sales persons of the selling companies. This is because customers believe that the selling companies convey true information about goods more than television and radio (Doster, 2013). This is additional evidence that stresses the significance of online marketing, which is conducted directly by the selling company. Companies that use the radio and television may not reap high benefits in 2014 because